It Is Desired to Build a Regression Model to Predict $\mathrm { y } =$

question 27

Multiple Choice

It is desired to build a regression model to predict $\mathrm { y } =$ the sales price of a single family home, based on the $x _ { 1 } =$ size of the house and $x _ { 2 } =$ the neighborhood the home is located in. The goal is to compare the prices of homes that are located in two different neighborhoods. A complete 2nd-order model is proposed. Which regression model proposes the complete 2nd-order model?

• A) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 2 } + \beta _ { 4 } \mathrm { x } ^ { 2 }\)
• B) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 2 } + \beta _ { 4 } \mathrm { x } _ { 1 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } ^ { 2 } \mathrm { x } _ { 2 }\)
• C) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 \mathrm { x } _ { 1 } } + \beta _ { 2 } \mathrm { x } _ { 2 }\)
• D) \(E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }\)

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Definitions:

Structuralism

An early school of psychology that sought to understand the structure of the mind by analyzing the basic components of thoughts and sensations.

Perception

The cognitive process that enables us to interpret and understand our surroundings through the integration of sensory information.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience and mental functions.

Structuralism

A theory of consciousness developed by Wilhelm Wundt and Edward Titchener, focusing on breaking down mental processes into the most basic components.